Question
Joint Probability Return on Security D Return on Security M 5/20 = .25 8% 6% 5/20 = .25 10% 10% 4/20 = .20 11% 9%
| Joint Probability | Return on Security D | Return on Security M |
| 5/20 = .25 | 8% | 6% |
| 5/20 = .25 | 10% | 10% |
| 4/20 = .20 | 11% | 9% |
| 2/20 = .10 | 15% | 10% |
| 4/20 = .20 | 19% | 11% |
If the risk-free rate is 4.36%, what is the beta of security D with respect to the market M? (If the risk-free rate were not given, could you calculate it from the data above?)
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Authors: Jack Jones
1st Edition
1545269920, 978-1545269923
